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    DollyDookie's Avatar
    DollyDookie Posts: 1, Reputation: 1
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    #1

    Jan 17, 2007, 05:17 AM
    Stock evaluation methods
    You are appointed financial accountant at a hardware store. Which of stock evaluation method would you use , LIFO,FIFO or weighted agverage and why.

    Thank you
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Jan 17, 2007, 04:17 PM
    There is no absolute answer to that.

    It depends on the type of industry you are in, what your competitors do, what management wants.

    There are a million factors in making that decision.

    Bets bet is to go with weighted average right now. However, if more information was available, FIFO or LIFO might make more sense.
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